One should unfold and leave their hands on the side after the fourth Takbeer and make Salaam thereafter. This is the method explained by Aala Hazrat Imam Ahmed Raza Khan (peace be upon him) in his magnum opus of Hanafi Fiqh, Fataawa Razvia.
He states, “Folding one’s hands is in the Qiyaam (standing position) for which there is continuance, as mentioned in Durre Mukhtaar and other major works of Fiqh. Salaam is made for exiting Salaah, so there is no cause for one’s hands to be folded at this juncture. It is therefore clear that one should unfold and leave their hands (at the sides) after the fourth Takbeer.”
(Fataawa Razvia, Vol. 9, pg. 194)
Sadrush Shariah Allama Muhammad Amjad Ali (Allah be pleased with him) writes in Bahaar-e-Shariat,
“After the fourth Takbeer without reading any Dua, one should unfold their hands and then make Salaam.”
(Bahaar-e-Shariat, Vo.l 4, pg. 835)
Allah and His Rasool know best.
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